At the end of Q4 2017, the GAV increased by 31.8% from EUR 169.7 million to EUR
215.8 million as compared to the end of Q3 2017. During the quarter, the Group
closed Vainodes I acquisition and raised additional gross equity of EUR 17
million through a secondary public offering in November.
In Q4 2017, the Fund NAV increased from EUR 86.7 million to EUR 107 million.
The increase is related to new equity raised in November and the Group's
operational performance over the quarter. The Fund also made a EUR 1.3 million
cash distribution to its unitholders (EUR 0.020 per unit).
In Q4 2017, the Fund earned a net profit of EUR 5,277 thousand (EUR 1,180
thousand during Q4 2016). During Q4 2017, the Fund's performance was positively
affected by year-end valuations. During the quarter, the Fund recorded a fair
value gain of EUR 3,337 thousand. Last year, the Fund's investment property
valuations were mainly performed in Q3 2016. Starting from 2017 onwards
properties are being revalued every 6 months, in June and December.
In Q4 2017, the Fund recorded a EUR 2.9 million NOI (EUR 2.3 million in Q4
2016). The increase is related to new acquisitions that were made following the
capital raisings at the end of 2016 and the beginning of 2017. The Fund has
completed the acquisition of Postimaja Shopping Centre on 13th of February 2018
and thus has deployed majority of the new capital raised in November 2017.
Quarterly Key Figures
Euro '000 Q4 2017 Q4 2016 Change (%)
-------------------------------------------------------------------------------
Rental income 3,217 2,540 26.7%
Service charge income 1,029 784 31.3%
Cost of rental activities (1,324) (1,014) 30.6%
-------------------------------------------------------------------------------
Net rental income 2,922 2,310 26.5%
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-------------------------------------------------------------------------------
Expenses related to public offerings (203) (313) (35.1)%
Administrative expenses (636) (415) 53.3%
Other operating income / (expenses) (63) 2 (>100.0)%
Valuation gains / (loss) on investment properties 3,337 376 787.5%
Operating profit 5,357 1,960 173.3%
-------------------------------------------------------------------------------
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Financial income 2 3 (33.3)%
Financial expenses (405) (413) (1.9)%
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Net financing costs (403) (410) (1.7)%
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-------------------------------------------------------------------------------
Profit before tax 4,954 1,550 219.6%
Income tax charge 323 (370) (187.3)%
-------------------------------------------------------------------------------
Profit for the period 5,277 1,180 347.2%
-------------------------------------------------------------------------------
Weighted average number of units outstanding 62,270,694 47,350,881 31.5%
Earnings per unit (EUR) 0.08 0.02 300.0%
Euro '000 31.12.2017 31.12.2016 Change (%)
--------------------------------------------------------------
Investment property in use 189,317 141,740 33.6%
Gross asset value (GAV) 215,785 154,938 39.3%
Interest bearing loans 98,087 69,172 41.8%
Total liabilities 108,809 78,129 39.3%
Net asset value (NAV) 106,976 76,809 39.3%
--------------------------------------------------------------
Number of units outstanding 77,440,638 57,264,743 35.2%
Net asset value (NAV) per unit (EUR) 1.3814 1.3413 3.0%
Loan-to-Value ratio (LTV) 51.8% 48.8%
Average effective interest rate 1.7% 1.8%
Investment properties PERFORMANCE as of 31 DECEMBER 2017
During Q4 2017, the average actual occupancy of the portfolio was 96.6% (Q3
2017: 97.5%). When all rental guarantees are considered, the effective
occupancy rate is 97.2% (Q3 2017: 98.0%). Average direct property yield during
Q4 was 7.1% (Q3 2017: 7.2%). The net initial yield for the whole portfolio for
Q4 2017 was 6.7% (Q3 2017: 6.9%).
Property City Countr Market NLA Direct Net Occupancy
name y value1 property initial rate for Q4
Euro'00 yield yield 2017
0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Duetto I Vilniu Lithua 16,210 8,327 6.5% 6.4% 100.0%2
s nia
Pirita SC Tallin Estoni 11,630 5,436 7.4% 7.8% 100.0%2
n a
Upmalas Riga Latvia 24,269 10,419 6.9% 6.7% 99.8%
Biroji
BC
G4S Tallin Estoni 16,570 8,363 7.4% 7.0% 100.0%
Headquar n a
ters
Europa SC Vilniu Lithua 39,600 16,856 6.9% 6.5% 95.5%
s nia
Domus Pro Vilniu Lithua 17,280 11,247 8.4% 6.9% 98.0%
Retail s nia
Domus Pro Vilniu Lithua 7,150 4,759 3.9%3 2.8% 73.4%
Office s nia
CC Plaza Tallin Estoni 13,240 8,664 8.3% 7.5% 100.0%
n a
Sky SC Riga Latvia 5,448 3,263 8.4% 7.5% 99.3%
Lincona Tallin Estoni 16,050 10,859 7.6% 7.3% 94.1%
n a
Vainodes Riga Latvia 21,870 8,052 4.3%3 4.2% 100.0%
I
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 189,317 96,245 7.1% 6.7% 97.2%
portfoli
o
1. Based on the latest valuation as at 31 December 2017.
2. Effective occupancy rate is 100% due to a rental guarantee.
3. Domus Pro stage III was opened in October, however, it was not fully
occupied during Q4 2017. It is expected to be fully occupied by the end of
Q1 2018. The property development yield and annualized direct property
yield is 7.9%.
4. Vainodes I acquisition was closed on 12 December 2017. The annualized
direct property yield is 7.0%.
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
Euro '000 Q4 2017 Q4 2016 12M 12M
2017 2016
--------------------------------------------------------------------------------
Rental income 3,217 2,540 11,839 7,874
Service charge income 1,029 784 3,692 2,594
Cost of rental activities (1,324) (1,014) (4,763) (3,315)
--------------------------------------------------------------------------------
Net rental income 2,922 2,310 10,768 7,153
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Administrative expenses (839) (728) (2,774) (2,190)
Other operating income / (expenses) (63) 2 14 97
Valuation gains / (loss) on investment 3,337 376 3,676 2,737
properties
Operating profit 5,357 1,960 11,684 7,797
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Financial income 2 3 47 14
Financial expenses (405) (413) (1,528) (1,253)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net financing costs (403) (410) (1,481) (1,239)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit before tax 4,954 1,550 10,203 6,558
Income tax charge 323 (370) (759) (798)
--------------------------------------------------------------------------------
Profit for the period 5,277 1,180 9,444 5,760
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net gains (losses) on cash flow hedges 148 (48) 274 (113)
Termination of interest rate swap agreement - - 57 -
reclassified to profit or loss
Recognition of initial interest rate cap (43) - (43) -
costs
Income tax relating to net gains (losses) on (18) 19 (50) 18
cash flow hedges
--------------------------------------------------------------------------------
Other comprehensive income/ (expense), net 87 (29) 238 (95)
of tax, that is or may be reclassified to
profit or loss in subsequent periods
--------------------------------------------------------------------------------
Total comprehensive income/ (expense) for 5,364 1,151 9,682 5,665
the period, net of tax
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic and diluted earnings per unit (Euro) 0.08 0.02 0.15 0.12
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Euro '000 31.12.2017 31.12.2016
--------------------------------------------------------------
Non-current assets
Investment properties 189,317 141,740
Investment property under construction - 1,580
Derivative financial instruments 89 -
Other non-current assets 146 288
--------------------------------------------------------------
Total non-current assets 189,552 143,608
--------------------------------------------------------------
--------------------------------------------------------------
Current assets
Trade and other receivables 1,568 1,269
Prepayments 108 178
Cash and cash equivalents 24,557 9,883
--------------------------------------------------------------
Total current assets 26,233 11,330
--------------------------------------------------------------
Total assets 215,785 154,938
--------------------------------------------------------------
--------------------------------------------------------------
Equity
Paid in capital 91,848 66,224
Own units - (8)
Cash flow hedge reserve (56) (294)
Retained earnings 15,184 10,887
--------------------------------------------------------------
Total equity 106,976 76,809
--------------------------------------------------------------
--------------------------------------------------------------
Non-current liabilities
Interest bearing loans and borrowings 96,497 58,981
Deferred tax liabilities 5,206 4,383
Derivative financial instruments 88 345
Other non-current liabilities 859 935
--------------------------------------------------------------
Total non-current liabilities 102,650 64,644
--------------------------------------------------------------
--------------------------------------------------------------
Current liabilities
Interest bearing loans and borrowings 1,590 10,191
Trade and other payables 4,202 2,876
Income tax payable 14 46
Derivative financial instruments 15 -
Other current liabilities 338 372
--------------------------------------------------------------
Total current liabilities 6,159 13,485
--------------------------------------------------------------
Total liabilities 108,809 78,129
--------------------------------------------------------------
Total equity and liabilities 215,785 154,938
--------------------------------------------------------------
Additional information:
Tarmo Karotam
Baltic Horizon Fund manager
E-mail tarmo.karotam@nh-cap.com
www.baltichorizon.com
The Fund is a registered contractual public closed-end real estate fund that is
managed by an alternative investment fund manager license holder Northern
Horizon Capital AS.
Distribution: Nasdaq, GlobeNewswire, www.baltichorizon.com
This announcement contains information that the Management Company is obliged
to disclose pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the above distributors, at
15:01 EET on 15 February 2018.
Attachment:
https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=663895© 2018 GlobeNewswire
